Garden Finance Overhaul: $10.8M Hack and 25% Stolen Funds Raise DeFi Red Flags

2025-10-31 09:43:25

Garden Finance, a Bitcoin bridge platform, has been thrust into the spotlight following a $10.8 million multi-chain exploit, with on-chain investigator ZachXBT exposing that over 25% of its historical volume involved funds from major hacks, underscoring persistent risks in DeFi’s $150 billion+ TVL ecosystem.

The $10.8M Exploit: Multi-Chain Breach and Response

The recent exploit drained $10.8 million across chains, exploiting vulnerabilities in Garden’s bridging mechanism. An address linked to the team issued an on-chain message offering a 10% white-hat bounty to the attacker, but no public statement has followed. This incident marks the platform’s latest challenge, following allegations of facilitating illicit flows, and highlights the fragility of cross-chain bridges in an era of escalating hacks.

Breach Scale: $10.8M stolen; multi-chain impact.
Response: 10% bounty offer; no official comment.
Market Cap: $20M+; 24H volume $5M.

ZachXBT’s Revelations: 25% Stolen Funds in Volume

ZachXBT’s investigation uncovered that over 25% of Garden Finance’s total volume stemmed from stolen funds, including from high-profile incidents. The platform allegedly profited six figures from these flows, ignoring victim refund requests. Gulati, the co-founder, has been criticized for celebrating growth amid these issues, with ZachXBT stating: “I sincerely hope a government puts your team in prison with Diddy next cycle for ignoring victims.” This pattern predates the hack, raising questions about due diligence in DeFi bridging.

DeFi Implications: Bridge Vulnerabilities and Compliance

The exploit and stolen funds exposure underscore DeFi’s ongoing challenges with bridge security and illicit finance. With $150 billion+ TVL, unregulated flows risk regulatory crackdowns, echoing Tornado Cash’s fate. ZachXBT distinguished Garden from fully decentralized protocols, noting only Tornado Cash passed his decentralization test.

2025 Outlook: $0.50-$1.00 GARDEN Consensus

Analysts predict GARDEN at $0.50-$1.00 by year-end, with 200% upside on security fixes. Changelly sees $0.40-$0.60; CoinDCX $0.80. Bull catalysts: Bridge audits; bear risks: Regulatory scrutiny testing $0.20 support.

For investors, how to buy Garden Finance via compliant platforms ensures entry. How to sell Garden Finance and how to cash out Garden Finance offer liquidity. Sell Garden Finance for cash and convert Garden Finance to cash enable fiat conversions.

Trading Strategy: Cautious Longs

Short-term: Long above $0.30 targeting $0.50, stops at $0.25 (17% risk). Swing: Accumulate dips, staking for 10% APY. Watch $0.35 breakout; below $0.25, exit.

In summary, Garden Finance’s $10.8M hack and 25% stolen funds exposure highlight DeFi bridge risks, urging caution amid 2025’s regulatory evolution.

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